Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

Public outrage over RBS causes Brown to re-think City bonuses

13 February 2009 / by Rebecca Sargent

City bonus systems need to change, the Prime Minister told the Liaison Committee yesterday as he faced questions from MPs over the UK's economic condition.

Gordon Brown's questioning followed the Treasury Select Committee's grilling of banking chiefs over their involvement in the decline of the UK's banking system.

It was during this hearing that RBS chief executive Stephen Hester said that despite receiving a £20billion Government bail-out and now being majority owed by the tax payer, RBS still plans to dish out staff bonuses, which according to reports, could total £1billion.

Mr Hester's confirmation that bonuses will still get paid have infuriated taxpayers - John Prescott’s petition "No Ifs No Buts- Give up the Bonus, RBS" has so far received 29,400 signatures from disgruntled members of the public.

One supporter, Adryon Stuart said: “For the management of these organisations to still get bonuses is insane. There is no other industry where this would happen in this situation.”

It is following public outrage over the issue that the Prime Minster has proposed that a better bonus system needs to be put in place.

Speaking yesterday Mr Brown said that the most important principle to follow over bonuses is that there should be no reward for short term; he said that rewards should only be for long term success.

He also said that bonuses should not be a "one way bet", and that they should be a reward that can be taken away upon failure.

The new bonus system should also be backed up if possible by the Financial Services Authority (FSA), the Prime Minister added.

And the principle of repaying bonuses has been backed up by a Populus poll conducted for The Times, which found that 64 per cent of those surveyed thought that bankers who took decisions which led to the taxpayer bailouts should be forced to repay their bonuses.

The Times poll also found that the capping of bonuses would be supported by 85 per cent of respondents, while 82 per cent also think that bankers' salaries should be capped.

Commenting on the issue of City bonuses, Liberal Democrat leader Nick Clegg said: "We need to cut through the nonsense about bonuses and stop them, right now, at board and senior management level.

"Banks can no longer justify a system of pay that destabilises the financial system."